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Mixed Fortunes at the Pump as Tanzania’s Fuel Prices Adjust for January

A mixed bag for Tanzanian consumers this month as petrol and kerosene prices rise while diesel costs fall, reflecting shifts in global markets and local currency exchange rates.

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Dar es Salaam – Fuel prices in Dar es Salaam have been adjusted for January, with consumers seeing an increase in the cost of petrol and kerosene, while the price of diesel has dropped. 

The Energy and Water Utilities Regulatory Authority (EWURA) announced that, effective Wednesday, January 7, 2026, the retail price of petrol will rise to Sh2,778 per litre, kerosene will increase to Sh2,763, and diesel will fall to Sh2,726.

The price shifts come despite a significant drop in global oil prices. According to EWURA, the reference prices from the Arab Gulf market showed decreases of 4.26 per cent for petrol, 12.83 per cent for diesel, and 10.44 per cent for kerosene. 

However, the full benefit of these lower global prices was partially offset for Tanzanian consumers by a 1.31 per cent depreciation of the shilling against the US dollar, which is used for procurement.

For motorists in the nation’s largest city, the new prices represent a month-on-month increase of Sh29 for a litre of petrol and a more substantial Sh110 for kerosene. In contrast, diesel users, including many in the transport and logistics sectors, will benefit from a Sh53 reduction per litre compared to December 2025 prices.

This trend of falling global oil prices has been pronounced, with 2025 marking the steepest annual price decline since the pandemic. Analysts have pointed to a global supply surplus and have forecast that Brent crude, a key international benchmark, could average around US$61 per barrel in 2026, continuing the downward pressure on prices.

Price variations are also notable across Tanzania’s other major ports. In Tanga, both petrol and diesel prices have increased, now standing at Sh2,839 and Sh2,787 respectively. In Mtwara, in the south of the country, petrol prices rose to Sh2,870, while diesel saw a price drop similar to that in Dar es Salaam.

In its public notice, EWURA has directed all fuel retailers to strictly adhere to the new price caps. The authority emphasised that fuel stations must clearly display pump prices on visible boards and warned that legal action would be taken against anyone who fails to comply. Retailers are also reminded of the mandatory use of Electronic Fiscal Pump Printers for all sales receipts.

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